move on after the baby's born. i move on after the baby's born. i move on after the baby's born. i move on after the baby's born. >> that will live in infamy. >> yeah. >> we will see what the final trade does. >> what is it? >> dominion. symbol, d. unusual buying in this name. just like that quote. >> i like facebook. i see the most aggressive buyers weekly. >> all right. >> this stock has been sold throughout the year and they are reporting tonight. >> all right, wiets? >> aig. we have seen good news with the insurers. pricing environment is great. they do well after the disasters, which you don't like to see. i think we do very well. earnings are a great stock this year. >> working on a good day of this street. dow is good for about 66 points. up nine out of past ten days. overall marking, looking at the

best january since 1997. that does it for us. "fast money" at 5:00 will be all over how the market closes and apple earnings as well. follow me on twitter. and keep watching power lunch because that show starts right now. >> scott, thank you very much. we have breaking news in washington and on wall street today. both having an impact on the other. eamon jappl eamon javers and john harwood. but first, sue at the stock exchange. hi, sue. >> hi. we are not quite making history yet but there is a lost optimism as i talk to the guys on the floor. we're not that far off from historic highs. 90 minutes ago, the dow crossing the 2007 high which was 13,780. right now the dow jones up 68 points at 13,781. the all-time high for the dow,

14,198. about 400 points away from that high water mark set in october of '07. so far this year, the dow is up 5% and that's only really about 14 trading days. turning to the s&p, more than 4% higher this year as well. that indaeks now just, give or take, about 75 point from its all-time high of 1565 which was also set in october of 2009. so there's pretty good mood down here on the floor, ty? >> thank you very much, sue. let's get back to the breaking news in washington. a vote on the debt ceiling. we will get to john harwood in a moment on what it means for the white house and senate. but first, apple eamon javers on the hill. >> we expect it to pass, maybe tighter than republicans would like the vote count to be, but ultimately what the pleasure would do is extend the debt

measure through to may 19th and politically what it does is rearranges the order of the fiscal fights we will have over the next couple of months and it means we will fight first over the sequester. remember that's that across the board budget cut postponed during the fiscal cliff fight in december and january. now that will be the first fight up at the beginning of march. republicans feel that that is a much more safe political ground for them to fight on than to fight over the debt ceiling which of course could threaten a default on the nation's obligations so we do expect this vote within the next couple of minutes here to pass by republicans, then it will go over to the senate side and the white house has signalled they might in fact sign it but i will leave that to john mar wood. tyler? >> let's get to the white house and senate reaction. chief washington correspondent john harwood has that part of the story. the white house, john, as eamon just said, signalled that the president would go along with this motion out of house.

yes it would, senate leaders talking about this yesterday on the air. and i'm told that democratic leaders hope in favor of this. democrats please bid this development because it has broken the link between a dollar for dollar amount of spending cuts to go with the increase in the debt limit. in fact one democratic aid told me yesterday that the decision by republicans to say that the debt limit will not apply during this period sets a precedent that they it will be difficult to walk way from. bottom line is the democrats in both the white house and senate feel that they have defeated the republican attempt to use this as the ultimate leverage point. they did that in 2011. it backfired on the country because we got the downgrade and backfired on republicans who lost more than president obama did in that standoff, which is why president obama is trying to

take yes for an answer accept this and count on the fact that even though it is only until mid may that the same prak sis will be followed once they get beyond mid may. that a question. we will have to see whether republicans will willing to do that. >> 10 if i'm hearing you right, john, is that using the debt ceiling as kind of hostage in budget negotiations, democrats feel that they won on that and that this is not going to come back again? >> yes and the ultimate sort of dooms day threat from washington, which is we are going to have a default or either a default on debt or selective payment of federal government obligations, appears to be melting away and that puts us back in the more conventional political back and forth about budgets and the automatic cuts. sequester. that gets us back to where we were in the 1980s. it is more of a norm of a political process. if we can stay there, that's good news for this president

because it reduces a threat to the economy and of course good news to people working in the economy in the financial market. >> john harwood, thank you very much. to mary thompson now with breaking news. >> announcing charges against three alleged international cyber criminals. the three have been charged again in infiltrating computers around the world, about a million computers around the world, including 40 thousand here in the u.s. with a virus known as the gozi virus. the plot the cyber criminals wanted to actually access information including bank account information in an effort to steal money from those accounts. also, the virus infected the computers at nasa. again, the three alleged criminals have been taken into custody. one is a romanian citizen. one is a russian citizen. and one is lafian citizen. all spreading a computer virus.

>> all right. the rally does continue right now with the dow jones industrial average up about 68 points. the dow and s&p hit fresh five-year highs. kenny is here with me to interpret what i trying to say down on the floor of the new york stock exchange. when we walked in, they called this the teflon market. they have basically put washington aside. they figured, washington is not going to default at this point as john harwood just mentioned. but you had an interesting point. it looms large in may, once again. >> of course it does. and like john said, all they did was rearrange the deck. they put the cuts in front and debt ceiling behind it. it is not like we've dealt with this debt ceiling problem. we have to deal with it come may. do i really think the market will have this big reaction as a result of this? i don't think so. i think the market is anticip e anticipati anticipating, which is why we have scent market move higher, right? testing this psychologically.

i think what is really going to pierce that is what happens with apple. everyone is just sitting on their chair waiting on apple and so as you get some sense. listen, google had great numberes. but market is not taking off as a result of that, right? >> no, but it is also not selling off. transports are still higher as well. that confirms -- >> that all confirms. now we wait on apple. we will see if we tested pierce 1500. i think if we get to 1500 psychologically, it certainly means something. it will get the momentum and jumps on board. but i think in the end, that the debt ceiling cuts will continue to just cap a little bit. but not saying we will collapse at all. i think we are just stuck here. >> but the benchmark numbers are still in place. >> absolutely. 1500 is a big psychological number. >> all right. pork chops and apples and cinnamon. you will get your own show one day, right? we'll all be history. in n just about three hours,

apple, as kenny just mentioned, will release its eagerly awaited first earnings report. the stock is down about 25%, all about concernses on the growth of its iphone and ipad sales. so, what do investors need to focus on? john knows and he joins us live from san jose, california. hi, john? >> hi, sue. iphone sales are the number one thing this corner. i think we will see another level of demand elasticity in the flag ship product. not just about the iphone five. if apple does better in consensus than iphone sales, it will be the older iphone 4 and 4 s remained far more popular than people expected in halftime, highlighted the fact that apple's old iphone outsold every android phone on verizon combined. iphone five did almost as well. iphone's took 63% up from 56

paers year ago. it helped that verizon is able to have a free iphone on contract for the first time. for ipad, that is also important. er with looking for units in low to mid 20 millions. but the big question mark here is mixed. how many ipad minis are selling versus full side ipades. there will be a mix on overall margins and margins and guide yuns with a big influence on how people feel about the stock. i will break down numbers as soon as we have them on closing bell. tyler? >> thank you very much. so, should you buy apple's stock if you don't own it already? let's ask at least one expert. shaw wu, stock analyst. shaw, stock is down over the past four months or so. obviously selling at a discount. you could have spent more in october. would you buy it at this price for say a one to two-year holding period? >> yes. we like the stock at this level. like you said, especially with this pull back. we think the story is pretty much still in tact. the growth story. you have iphone that is still

seeing a lot of growth. seeing penetration around the world. and also as i mentioned earlier, you also have them selling not just the flagship iphone five but 4 and 4s allows them to address the mid range of the market. we think that will continue to be a big story. last but not least, the ipad. we see that as still fairly early inity adoption phase. capitalizing pcs. but we see the market, apple is leading and moving to tablets. >> at 511 now. do you have a price target on this stock, say a 12-month? >> yeah, we have 840 price target. based on we think a reasonable 13 multiple. but we also take into account. cash, the massive cash balance they have. >> 840. but is there a time line on that 840 time line price target? >> yeah, 12-month target. >> wow. that would be a significant move from here. what is that, 60% almost? >> yeah. i mean, it looks high from here but keep in mind, the stock almost got there, not that long

ago. around 700. so we think it can revisit -- >> quickly, is there anything in today's report that you will have your eye on specifically, particularly? >> i think the most important net trick is the gross margin. that's a sign of pricing power that apple has. that is probably the most important. second thing is iphone units. >> all right, shaw wu, thank you very much. >> ty, boeing dreamliner problem may be going all the way it capitol hill. what is going on, phil? >> hearings in washington to discuss the future of dreamliner. we will have more when "power lunch" returns. coming up, power pitch. start-ups give us their 60-second pitch. >> hi, i'm founder and veo of learn spts vest.com. >> we give you insight to the fast paced world.

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coach is getting slammed. trading, as you see there. down $9. 15%. after the upstale leather goods maker reported weak holiday sales. down 2%. that's third time in 11 years that that has happened.

over all, revenue rows a weaker than expected 3.8% to 1.5 billion. it is one bright spot though. china sales were up 40% and in a cnbc exclusive, coaches ceo lou frankfurt will be live on the closing bell. that begins at 3:00 p.m. eastern time. sue? >> ty, boeing edging just a bit higher in today's trading session. nice respite for shareholders pummelled in the last week. up a quarter percent. a couple of big stories that investors need to know about today and phil lebeau is in chicago with both of those. hi, phil. >> hi, sue. this is secretary of transportation ray lahood speaking at a luncheon of the arrow club. we expect him to make some comments regarding the dreamliner. he hasn't spoke about the dreamliner yet. it has been a week since the

grounding of the 787. he will is introduce the head of the faa. here is the latest regarding the 787 investigation. jtsb within counterpart to ntsb out of japan, now says the battery involved in an incident over there was not overcharged. that's a reversal for them. meanwhile, ntsb is testing the lithium ion battery cells in washington, d.c. investigators are running multiple test at multiple locations. some at boeing in seattle, some at washington. they not continuing to peel back the onion looking for more, in terms of what is the cause between the dreamliner incidence. also in washington, there is discussion that u.s. senate is considering hearings to address the history of the 787 dreamliner. the t is in the discussion phase. the house of representatives, says it has no plans to hold hearings regarding the 787 and

lij yom ion batteries. you mentioned shares of boeing moving higher. we want to show you eaton, interday. investigators in the uk are looking at fuel involves manufactured by eaton in the 787. there is discussion about what is causing fuel leaks with the graem liner. er with monitoring secretary lahood's speech in washington. he says anything regarding the dreamliner, we will bring it to you. >> thanks, phil. we are monitoring the vote now taking place. the house is now voting on republican's daet limit bill. it'll be about a five-minute vote. 218 votes are needed to pass this bill. we will continue to monitor the vote tally. once again, house is now voting on the republican debt limit bill. beexpect to take about five minutes or so. ty? >> thank you. i think we will take kelly now for some -- sorry? oh, i thought we were going to kate kelly for breaking news. but no. may be can cold day on capitol

hill, but it got hot up there. hillary clinton interrupting testimony on the benghazi attacks in libya. >> what difference does it make? it is our job to figure out what happens and to prevent it ever happening again, senator. ♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it.

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welcome back to "power lunch." we have been extending the debt ceiling and it does appear though the vote is going on, with 280 votes it does have the votes it needs to pass. that means republicanes have been successful, at least so far in their plan to reverse the order here of the fiscal fights in washington. preferring politically to fight over the battle on the sequester, rather than the battle on the debt ceiling itself. which raises the prospect on the default of the nation's obligations. the sequester, much safer political ground and looks like republicans will be able to proceed with that fight because it looks like the senate will take this up and pass it and looks like the president of the united states has signalled we will sign it. so sue, that's the status from washington. >> eamon, they are watching washington very closely here on wall street. to bertha coombs now. >> already it's traded three times its average daily volume

over the last ten days. a note saying the sail of safeway canada has been discussed for years but speculation is getting even louder with the recent announcement in the area. of course we know super value, sue, is selling off a lot of parts, folks looking for consolidation in this sector. back to you. >> indeed, thank you very much. to kate kelly now. she has breaking news on david einhorn. >> a couple of details about david einhorn's challenging ideas in 2012. i want to correct what we said earlier about being down 5% in december. in fact he was down 4.9% in the forth quarter. the trouble lay in his short book. there is speculation when he says in a cryptic way in his investor letter that iron supplement didn't go down smoothly, perhaps he meant to

herbalife within the multilevel marketer, that he has rumored to have short for some time now. david einhorn won't comment whether he has a thought of herbalife, long or short. but i did speak to an investor. he said einhorn alluded to that iron ore, not herbalife, damaged the short performance. so in other words he was short more than one iron ore company. we don't know which names yet, tyler. but they did not go as planned. they were side ways or up. that where the trouble lay in terms of fourth quarter performance. >> thank you very much. netflix comes out with earnings after the bell. julia boorstin has more. let's go to julia. >> netflix shares shooting up higher, more than 4.5% of earnings reports due out this afternoon. the number to watch is screaming subscribers. expecting 27 million domestic and 5.5 million in the national

streaming subscribers. wall street projects a quarterly loss of 13% a share, revenue of $934 million on the quarter. investors will closely watch guidance to see what netflix expects its investment in original comment and international expanse to really pay off. i'll be back with netflix's earnings numbers after the bell and tonight an exclusive interview with reid hastings. >> thank you very much. fireworks on capitol hill. and hillary clinton answering tough questions in her long-awaited testimony over the benghazi terror attacks. michelle crewso cabrera with the details. >> the most heated moment came during ron johnson's questioning. he wanted know why it took so long for the administration to back off from the original story from the attack in libya was a result of a spontaneous protest. listen. >> again, we were mislead there

were supposedly protest and something sprang out of that. assault sprang out of that. that was easily ascertained that was not the fact and the american people could have known that within days. and they didn't know that. >> with all due respect. the fact is we had four dead americans. was it because of a ro test or guys out for a walk one night and decided this would he go kill some americans. what different, at this point, does it make? it is our job to figure out what happens and do everything we can to prevent it from ever happening again, senator. >> senator john mccain saying her responses were not good enough. that exchange was quite civil and polite. secretary clinton took full responsibility for the lack ever adequate security in her opening statement, which brought her to tears. >> for me, this is not just a matter of policy. it is personal. i stood next to president obama as the marines carried those flag-draped kass tets off the plane at andrews.

i put my arms around the mothers and fathers, the sisters and brothers, sons and daughter and wives left alone to raise their children. >> as for the controversial talking points said repeatedly on susan rice if the fall, clinton said she wasn't involved in the creation of the talking point. if you want to see a repeat of the soundbite from hillary clinton, you can see it on cnbc.com. >> they were driven completely from the white house? >> she said she was extremely busy calling the president of tunisia, and trying to beef up embassies and facilities -- >> odd that secretary of state wouldn't be involved in the developing of that. going to the u.n. ambassador who was the person opt talk shows. >> and there were clearly skeptics in the audience and senate. >> thank you. >> thanks. >> sue, down to you. >> ty, the man that made record profit betting on the housing bubble, bursting is bullish op the u.s. economy. kate kelly caught up with them

first. hi, kate. >> that's right. john paulson betting big on housing in 2007 and scoring huge profits that year totaling $15 billion. fast forward to 2013 and this time he calls the housing bottom. we will tell you more on his thesis, after the break. hey, buddy? oh, hey, flo. you want to see something cool? snapshot, from progressive. my insurance company told me not to talk to people like you. you always do what they tell you? no...

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welcome back to "power lunch." i'm sharon epperson here at nymax. gold prices are closing. easing off of the 1690 or so level looking at gold prices down about 67 bucks, right around 1686 an ounce. behave seen easing here in the gold price at the debt ceiling talks continue in washington. we're continuing to watch those very carefully as traders here have seen trading in the silver market where silver was at a five-week high. we are continuing to watch this price of silver and a pull back of copper. after copper reached a one-week high. er with continuing to see what will happen in china with pmi. that could be key in trading session ahead. back to you, sue. >> thank you very much, sharon.

to the trading action here where brian joins me on the floor of the nyse. good to see you. >> good to be here. >> how do things look? >> good. people walk by and look and say, we have green across the board. i do want to point out, almost all of the gains in the dow are from ibm. you see, up 70, basically 75 point from ibm. obviously they have great numbers and i'm continuously fascinated that they got out of the core business ten years ago and transformed themselves. incredible forsight of the management of that company. we have been over ad nauseam their earnings. but look the at collateral damage within the luxury space. much all off their lows. but still in negative territory and obviously we had just enough to a flat market. also the dollar is stronger, sue. weighing on commodities and commodity stocks as you might imagine. all down.

the steel, heavy volume there. down three quarters percent. finally, the rails, up all exception union pacific reported in the last 34 hours. coal is still horribly weak. >> they are on the upside of the dow. that's all anybody is watching down here, if you're a bull anyway. thanks. good to see you. let's go to the nasdaq. seema mody is there. >> we are seeing shares of google outperform in the last 15 months. last night reporting a smaller than expected quarterly loss. a couple sales sites. and shares of amd, that stock is higher. all eyes on apple. that company getting set to report earnings to knit. here is our stock of the day, sue. pharmaceuticals up better than 58%. you can see that stock is a

better performing stock on the nasdaq by a tick index. back to you. >> that quite a chart there. >> let's look at the bond market for you right now. bond market is watching washington very closely and we have seen a move in interest rates by the debt market vote which we have been reporting on. right now we have the the yield on the ten-year. we have seen the move to the down side in 30-year bond but the yield is holding steady. hasn't moved all that much. it right now watching closely, fst specifically the dollar trade the yen. and that's a look at credit markets and your bond market for this hour. tyler, over to you. >> thank you. john paulson best known for making big money the housing top is now calling the housing bottom. kate kelly here with more.

hi, kate. >> hi, tyler. i was where john paulson and challenges and solutions was title of it. but the interesting take away is he sees this as one of the most positive periods for housing. the most positive for since the lehman crisis. he notes that home prices are up. at a decade low. he thinks factors like that will stimulate builders to create new inventory and says mortgages are at an extremely low level. and if so if you are an individual investors in his view, the real estate is at his single best opportunity. he doesn't like stocks. 2012 a great year in the stock company. good start for 2013. strong in equities though he is known for credit opportunities strategy as well as merger arbitrage. he thinks credit expansion is happening. i think we will see more credit

cards, more auto loans, et cetera. but he says think about residential real estate. think about energy, and petrol companies. and we see growth in those areas. but stay away from credit for now. >> kate, lot of ideas there. thank you very much. so john paulson is bullish on housing. one area that is on fire, home renovations. how can investors get in on the action in that sliver of the housing world? diana olick has more. eye, diane. >> hello. in d.c. you have one renovation, another one next door, another one behind that in the alley and pat turn around because behind that dumpster is a third renovation on one street.

that means billions of dollars, thousands of new jobs and big boost to stocks that fuel this business. take a look at numbers here. remodeling spending, just by homeowners alone, that is owner occupant hit 2007 peak of $146 billion. only to fall to $110 billion by 2011 according to a new report by the harvard joint center for housing. now it comes back to the 120 range and this doesn't include the $10 billion spent by foreclosure investors rehabbing to rent. jumping 9% last year and poised it make double-digit gains this year. >> the interest rates have helped a lot. and people are not as afraid to invest in their homes. for a while there, everyone was, you know, scared to death. >> now this new spending hour is fuelling the remodeling stocks like stanley black and decker, lowes and hoe home depot to name

a few. you also want to keep an eye on lumber, copper and gypsum. lowes saying it is adding 45,000 temporary job for the spring remodeling market. one more thing, we talked about how there is very little supply of homes out there to buy. take a look. these houses are adding huge amount of square footage. that is because a lot of these folks wanted more space. went looking for something bigger and better and simply couldn't find it so they just added on. back to you, tyler and sue. >> thank you, diana. thank you very much. sfr diana olick to diane black. republican representative to tennessee. it extends the debt ceiling limit for another three months. welcome, good to have you with us. >> good to be with you, tyler. >> in the last few minute, chief washington correspondent, put out the idea that this vote, or this change of tactics, in the midst of the fiscal discussion,

effectively may take the debt ceiling off the table as a bargaining chip. not just for this go round but going into the future. do you see it that way? is the debt ceiling no longer a legitimate tool for use? >> i think that that is exactly what we are doing and requiring that there will be a budget passed by the senate. obviously if you don't have a budget pass in four years now that democrat controlled senate has not passed a budget. you can't get to the point of talking about how you control your spending. we know that washington has a spending problem. this is a way that we can get them to do what they are stat torely required to do. so we are really hoping that this will make it so that they come up with a budget that we can actually talk about. >> so just to make it clear here, do you view this move as one that will mean that we will not be facing a discussion over raising the debt ceiling again, to be used as a lever either for

budget cuts or anything else? is it off the table now as a tool for use by either party? >> we are going to just extend it for the period of time that we believe, until we can get done what really is necessary and that is to get down to the brass tacks and start talking about the spending and getting the spending cuts and reform, entitlement reforms on the table. if we are able to get what we have been asking for for at least one for one, one cut for one increase, actually the president talked about during the campaign, he with do three to one. we would sure like to have three to one. if we could get to that point then we wouldn't have to be talking about this. we could do a long-term. >> take me inside the huddle, if you wouldn't mind, congresswoman. and tell me how this change of tactics came about. i gather it arose during your meeting with the republican congress down in williamsburg last week. how did it come back? whose idea was it?

>> well, tyler, we have been talking for the last two years since i've come to congress about, how can we get the democrat controls senate to do what we need them to do? we have put a budget on the table the last two years but we can't get conversation. the president obviously put a budget on the table. we didn't get any votes for it in the house or senate so we have been negotiate willing against ourselves. and this is the only way you are really going to get to the topic of getting fiscal control here in washington. and so in thinking how can we get the senate to move and do what they are constitutionally required to do, this is one of the thoughts we had, to say, you don't pass a budget, you don't get paid. >> all right within congresswoman black, thank you very much. we appreciate you being with us. >> you're welcome. >> thanks again. sue? >> ty, florida multimillionaire is appealing his conviction on rather unusual grounds. our wealth editor, robert frank, is here with the details on that. hi, robert. >> hi, sue. that right, goodman is arguing that the jurors could not see past all his money.

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learn more with our free usaa retirement guide. call 877-242-usaa. welcome back to "power lunch." dow jones about 400 points away from its all-time high. but two components hitting its high. 3m which report tomorrow. and disney as well. getting an upgrade. tyler? >> thank you very much, bertha. it is hot in melbourne, as mandy knowes. let's see what is hot on "street signs" coming up. >> it is so hot down under. top of the hour, remember it was hard it find an apple bear, now it is cool to hate on apple. we will find out, usa, usa, we will talk to mark of pimco, who is big about investing here at home in a couple of sectors. we will tell what you they are. it is cold and gray outside here

in the northeast. so how do you feel after viewing pictures of your friends recent tropical get away on facebook? we will talk to a psychiatrist on how social media is making us miserable. all those things coming up on the show, guys. back to you on "power lunch." >> i love that idea. it makes me miserable when i see my friends having fun like that, and warm. headlines time, folks. the rare earth mining company said in a regulatory finding that fourth quarter revenue and cash flow were significantly lower than originally expected. different story, though, for csx. number two railroad. reported better than expected earnings. saying a decline could come to a halt in the first quarter of 2013. quest diagnostic under pressure. its profit fell in the fourth and warned that its 2013 earnings would come in below forecasts. sue? >> ty, very interesting twist in a manslaughter charge that has

riveted palm beach florida. the polo player found guilty of manslaughter is hoping to get his verdict overturned. he is arguing that jury had an anti-wealth bias. this is an interesting one to say the least, robert. >> is, as a legal precedent. the question here is whether envy against the rich can be grunds for a new trial. john good plan is appealing this conviction partly on claims that he was discriminated against for his wealth. of course is the heir to family fortune and founder of the international polo club palm beach. his bentley collided with a hyundai and he left the scene of the crash. goodman's lawyer said the jurors were quote biassed because of media coverage that focused on goodman's wealth and said jurors displayed too much class envy to be truly impartial. jurors quote voiced prejudice

against the defendant's wealth and one juror called him quote the polo guy and said, quote, the rich have more advantages. well, they often do. another portion says prosecutors were quote shamelessly trying to stoke the jurors class bias throughout the trial through references to goodman's quarter after million dollar bentley and his desire for high end vodka. goodman's attorney says the car comparison was especially unfair since the bentley is quote almost the same size as the hyundai. now the florida attorney general reject these claims saying the trial was fair. we will see whether this appeal works. now this certainly we live in a time when the wealthy feel persecuted whether the legal system aagrees here, sue, that the big question. >> it is unprecedented. certainly to file an appeal with that type of approach. yet on the other hand, if you look at the election and fact that a majority of the american public want to see taxes raised on the wealthy and indeed that has happened, you wonder whether

or not the attorneys don't have a point. >> you know, it is a novel argument. there is precedent in a legal system for sp kind of prejudice against the defendant and what they are arguing here is that this prejudice wasn't race based or any other gender base. what we usually hear, it is class based. if you look at the media coverage leading up to and during the trial there was a lot of focus on his wealth and jurors were aware of that. they may have an arg a upt here, but it'll be a tough one to prove. >> yes, indeed it will. i know you will follow it for us. thanks, robert. we want to let you know that white house is weighing in on the fact that white house just voted and it welcomes the passage of the debt ceiling suspension but repeats its feeling that it would like to see a long-term extension of the debt ceiling. well, if you have an idea and you would like some big money behind it, don't move. we will see how it comes together in the power pitch. that's next. ♪ [ male announcer ] how do you turn an entrepreneur's dream... ♪

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this is the power pitch. a new way for invastoinvestors t the word out about their

invention. alexa von tobel is ceo after founder of learnvest. she dropped out of harvard business school to pursue her dream of making financial planning accessible to all. here is her pitch. >> hi, i'm alexa von tobel, the ceo and founder of learn vs vest.com. i had a dream it make financial planning accessible no millions of americans in america. i was at harvard and i did a crazy thing, drop out to try to make my dream a reality. over the last three years, we have raised $25 million and just in the last week announced all of our new product. today, as a free user, you trade an account, link your account so you can see what's happening with your finances and get access to our amazing free content to help you do everything you need to with your money. if you want it upgrade, can you

get connected directly with a financial planner who works with us. who looks at everything happening in your financial life, making you a five-year plan and fee from 350 to $600, we are there for you for all of your financial decisiones. we have this passionate dream it make financial planning not a luxury but making it as accessible as joining a gym. >> all right. we have alexa on the right side of your screen. she can't defend herself or react until we bring her in. we have billionaire businessman jean paul, founder of paul mitch en, house of bluees. we have with us john forte. she has 25 million in funding behind her. but what do you think? you're not the prime audience. do you think there is a market for a product like this? >> jean paul? >> yes. my mother growing up, we didn't have computers those days, would

use an envelope and put in so much for food, so much for utility and so much to put away until 11 years later she had enough to put a down payment on a very, very small house. >> john forte, competition. men are also users. but do you think there is something else out there that also combines the content with the planning? >> yeah. it is a great idea. but i think there is a lot of stuff out there like this. on the low end, you have mint where you suck in your banking accounts and brokerage accounts and it gives you a sense of where you are a over all. you don't have to pay anything for that. then at the high end you have services like wealth front, personal capital, betterment, trying to manage your money, investable money if it is over $10,000 in a lot of cases. >> let's bring alexa in. john you get the first question. >> is your advantage technology? how do you take on some of the other options? >> so first, our major advantage is technology. we have a tool just like mint but what is pretty powerful is

your financial planner can co-view your dash word with you when think are helping you make recommendations. sort of like goog he dots for your money. you should know there is an there are 89 product that is entry level. it is 89, 349 or 650 for the year. we will walk them through everything for their debt so we have another product. >> jean paul, anything you are left wondering? >> yes, you raise $25 million, which should take you into what you're doing and expand the business. are you set up to grow organically are you looking forward to raising more money in order to go? >> what is pretty exciting is we have hundreds of thousands of users today. adding anywhere to a thousand, to yesterday we added about 7,000 users. it is growing extremely quickly, which is exciting. most of that is organic and through business deals we are doing. user on the planning side is 92% likely to refer to a friend

because there is no product where you have an expert that you can talk to that is dedicated to you, to give you answers. >> so your answer is that you can grow organically now. you don't need money to grow. >> yes. >> if anyone is budgeting money properly, it should be you, because you are giving the advice. you are taking your own advice and probably doing pretty good. >> jean paul, in or out? >> in. >> john? >> out unless i can hear more about what their advantage is. >> as an investor, i don't know yet. but as a user, i'm in. i actually use their product. thank you very much. >> how about you? are you in or out? what do you think of learnvest? log on to power pitch.cnbc.com and cast your vote. >> in the next hour, tough year for unions, membership lowest level since the 1930s. we will have the details in the next hour here on cnbc.

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